{"id":10381,"date":"2022-07-27T18:16:55","date_gmt":"2022-07-27T23:16:55","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10381"},"modified":"2022-07-27T18:16:57","modified_gmt":"2022-07-27T23:16:57","slug":"opinion-get-in-front-of-these-three-stock-market-sectors-before-they-blossom-into-mainstream-darlings","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10381","title":{"rendered":"Opinion:\u00a0Get in front of these three stock market sectors before they blossom into mainstream darlings"},"content":{"rendered":"\n

Onshoring, outer space and biotech will be as popular as apps, streaming and crypto are today<\/em><\/strong><\/p>\n\n\n\n

We\u2019ve always made our biggest money by getting in front of trillion-dollar trends before they are noticed.<\/p>\n\n\n\n

And I had an epiphany the other day. I realized there are three burgeoning Revolutionary trends that are in the sweet spot for us. We should focus our buying exclusively on these three sectors.<\/p>\n\n\n\n

You might recall that we were among the first investors in the\u00a0Streaming Revolution<\/a>,\u00a0Smartphone\/App Revolutions<\/a>, Cloud Revolution,
Cryptocurrency Revolution<\/a>\u00a0and\u00a0Electric Vehicle Revolution<\/a>.<\/p>\n\n\n\n

The App, Cloud, Streaming, Crypto and EV revolutions are still crowded, as everybody wants to be a Revolutionary Technology Investor.<\/p>\n\n\n\n

I want to exclusively focus my time, energy and investing on these sectors for the foreseeable future:<\/p>\n\n\n\n

1.<\/strong>\u00a0The Re-Domestication of the Supply Chain Revolution.<\/strong>\u00a0(I\u2019m trying to come up with a catchier name that fully conveys the concept. I\u2019m open to suggestions from readers.) The boards at every company on the planet that source\u00a0anything<\/em>\u00a0from China or the Middle East are sitting around talking about how they can\u2019t continue to use the same globalization playbook. They have to bring as much of their supply chains, factories and logistics to their home country as possible. That means hundreds of corporations are going to spending trillions of dollars building factories, distribution networks, and other supply chain services and products in the next decade.<\/p>\n\n\n\n

Companies are going to invest as much as possible upfront to make sure these factories are as laborless<\/em> as possible. Despite the focus on laborlessness, the onshoring of trillions of dollars of annual output into the U.S. will create millions of new jobs; it\u2019s just the output per employee will be at previously unheard of levels.<\/p>\n\n\n\n

In some sense, Tesla TSLA<\/a> <\/strong>is the model for what will happen across an array of manufacturing industries as they domestically source and build as much of each product as possible. Likewise, it\u2019s possible that someday Tesla\u2019s human-shaped robots will indeed provide laborless labor for factories too. Tesla as a robotics company? They already build their own factory robots anyway. The point here is that The Onshoring Revolution \u2014 a better name? \u2014 is real.<\/p>\n\n\n\n

Intel<\/h2>\n\n\n\n

My favorite stock for this revolution is Intel INTC<\/a> <\/strong>.   <\/strong>Intel is the only company on the planet that can help the U.S. and Europe create their own chip-supply chains. If they don\u2019t do it, the entire Western economy, and perhaps civilization, will collapse if China ever takes over Taiwan Semiconductor Manufacturing TSM<\/a> <\/strong>and shuts off U.S. access. The company will let governments pay for most of the fabs, and Intel could be a monopoly in the West in the single most important supply chain for our economy: making chips. (I\u2019d also mention: Intel could be taking market share for the first time in a decade; it trades at less than seven times three-years-out profits, and less than 10 times next year\u2019s estimates; it has a rock star CEO.)<\/p>\n\n\n\n

Rockwell<\/h2>\n\n\n\n

I\u2019ve just started building a full-sized position in Rockwell Automation ROK<\/a> <\/strong>, a company that focuses on smart manufacturing. I\u2019ve got a spreadsheet full of names, but this is the only that I\u2019ve warmed up to so far as both its valuation seems compelling at nine times my 2025 profit estimates, with double-digit topline growth and very strong marketplace positioning in several subsectors. The stock has been moving up in a straight line for the last week or so as I\u2019ve just been finishing up my homework on the name. I\u2019d welcome the chance to scale into a larger position if it falls toward recent 52-week lows. I\u2019d also mention that I\u2019ve decided to sell the other half of my Roku ROKU<\/a><\/strong>stake. I guess you could say I\u2019m dropping the \u201cU\u201d in Roku as I swap in ROK.<\/p>\n\n\n\n

See, the Streaming Revolution in 2022 isn\u2019t new or burgeoning in the way it was a decade ago when I was hard at work learning how we would eventually invest in it. I\u2019d rather look for the next unrecognized trillion-dollar marketplace. Rockwell is better-positioned for more potential upside while being a less-crowded investment than Roku is. Intel\u2019s better-positioned with more potential upside while being a less-crowded investment than Netflix NFLX<\/a>\u00a0<\/strong>is. I\u2019ll write more about Rockwell in coming weeks.<\/p>\n\n\n\n

2. The Space Revolution.<\/strong> Costs to get stuff and people to space are plummeting, and the technological abilities get more advanced. The Space Revolution is at the first-batter-up-at-the-top-of-the-first-inning stage, and most of the best long-term Space Revolution stocks are still privately held.<\/p>\n\n\n\n

Rocket Lab and Terran Orbital<\/h2>\n\n\n\n

Rocket Lab RKLB<\/a> <\/strong>is my favorite publicly traded space stock. I\u2019ve also started nibbling on a new space stock called Terran Orbital, whose symbol is \u201c LLAP<\/a> <\/strong>\u201d \u2014 live long and prosper. (Get it?) I\u2019ll write about this stock in coming weeks. Five years from now, I expect we will have hundreds of publicly traded space stocks to choose from and a handful of names that will be on the way to attaining trillion-dollar valuations. Now\u2019s the time to learn how to invest in space, just like it was back 10 or 15 years ago when we were learning how to invest in The Streaming Revolution.<\/p>\n\n\n\n

3. The Biotech Revolution.<\/strong> This is a sector that\u2019s been left for dead for a long time but is about to see a bunch of new near-miraculous medical, life-extending, life-bettering breakthroughs. I\u2019m not as savvy in the biotech\/medical industries as I am in most other tech sectors, so I\u2019m treading lightly and slowly, and using a basket approach. In the biotech sector, I own iShares Biotechnology ETFIBB<\/a> <\/strong>, SPDR S&P Biotech ETF XBI<\/a> <\/strong>and small positions in Dynavax Technologies DVAX<\/a> <\/strong>and Provention Bio PRVB<\/a> <\/strong>, and a couple other names in the hedge fund. This sector, unlike the prior two, isn\u2019t exactly brand new and, indeed, is already a trillion-dollar marketplace. Just something to think about.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Onshoring, outer space and biotech will be as popular as apps, streaming and crypto are today We\u2019ve always made our<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[3595,888,3608,3607,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10381"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10381"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10381\/revisions"}],"predecessor-version":[{"id":10382,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10381\/revisions\/10382"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10381"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}